China's Ministry of Finance (MOF) issued on Wednesday 28 billion yuan worth of 3-year T-bonds at an annualized yield of 2.6503 percent, lower than market expectations. Statistics from China Government Securities Depository Trust & Clearing Co. showed that the yield on the 3-year fixed interest rate T-bonds traded on the domestic interbank market stood at 2.7139 percent. Market players disclosed that the subscription ratio reached 2.39 times the volume offered.
Analysts noted that thanks to the cuts of interest rates and reserve requirement ratio by the central bank, it was well within expectations that the auction yield was lower than the level on the secondary market. This batch of bonds will be combined with the original one to go into circulation on November 4. The principals and the last batch of interests will be paid on September 24, 2018. This is the additional issue of the 22nd batch of book-entry coupon bearing T-bonds offered by the ministry in 2015.
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